The QE4 End-Game?

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Putting Everything On Red? Why This QE4 Really Matters For All Investors

 

Some policy-makers are downplaying their latest QE4 activities. We think these activities are significant and probably will add around one-fifth to the pool of Central Bank money. During each of the previous QE phases, US bond term premia rose by an average of 135bp, dragging Treasury yields higher. In both QE1 and QE2 the US dollar fell, but in QE3 it strengthened slightly and in all QE phases equity prices rose. We view this renewed QE4 as a ‘risk-on’ period. This phase may signal the ultimate end-game of the 10-year bull market, but, with so much cash already sitting on the side-lines, this new stimulus likely still has some way to go.

 

Comments

  1. Kind_Helper20 February 2020 at 23:23

    It very cool game. So much better than the mixed number calculator game that I have played before.

    ReplyDelete

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